Novo Nordisk A/S (NVO) and Its Competitors Financial Analysis

Novo Nordisk A/S (NYSE:NVO) is one of 907 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its competitors? We will compare Novo Nordisk A/S to similar businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Dividends

Novo Nordisk A/S pays an annual dividend of $0.81 per share and has a dividend yield of 1.7%. Novo Nordisk A/S pays out 19.8% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 3.7% and pay out 50.5% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Novo Nordisk A/S and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Novo Nordisk A/S	$329.43 billion	$15.51 billion	11.54
Novo Nordisk A/S Competitors	$17.65 billion	$3.11 billion	538.98

Novo Nordisk A/S has higher revenue and earnings than its competitors. Novo Nordisk A/S is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Novo Nordisk A/S has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Novo Nordisk A/S’s competitors have a beta of -3.23, indicating that their average share price is 423% less volatile than the S&P 500.

Profitability

This table compares Novo Nordisk A/S and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novo Nordisk A/S	35.36%	61.20%	21.49%
Novo Nordisk A/S Competitors	-2,498.12%	-250.15%	-17.02%

Analyst Recommendations

This is a summary of current recommendations and price targets for Novo Nordisk A/S and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novo Nordisk A/S	1	15	5	0	2.19
Novo Nordisk A/S Competitors	7616	13713	25588	996	2.42

Novo Nordisk A/S currently has a consensus price target of $65.81, indicating a potential upside of 39.42%. As a group, “Pharmaceuticals” companies have a potential upside of 29.15%. Given Novo Nordisk A/S’s higher probable upside, equities analysts clearly believe Novo Nordisk A/S is more favorable than its competitors.

Institutional and Insider Ownership

11.5% of Novo Nordisk A/S shares are held by institutional investors. Comparatively, 32.8% of shares of all “Pharmaceuticals” companies are held by institutional investors. 0.1% of Novo Nordisk A/S shares are held by company insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Novo Nordisk A/S beats its competitors on 8 of the 15 factors compared.

About Novo Nordisk A/S

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with Aspen Pharmaceuticals to produce insulin products; and with Korro Bio, Inc. for the discovery and development of new genetic medicines to treat cardiometabolic diseases. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.